The new level of service comes in response to DOL
Advisory Opinion 2001-09A, also known as the SunAmerica
Opinion (see
DoL Lowers Another
Advice Barrier
), issued last December. In that opinion, the
Department of Labor sanctioned the offering of investment
advice by a financial institution for a fee, so long as it
was based on the computer programs and methodology of a
third-party, independent advisor, thereby eliminating
conflicts of interest.

Under the new relationship, unveiled today, CitiStreet
Advisors, LLC will provide advisory and fiduciary services,
while Financial Engines serves as the independent
sub-advisor and provider of the advice technology
platform.

Expanded Relationship

CitiStreet has been providing call center-delivered
advice based on workstations powered by Financial Engines
for over three years, according to the firms.
However, until the DoL Advisory Opinion, to avoid any
conflicts of interest, CitiStreet limited that advice to
five level-fee index funds.

CitiStreet will deliver advice on existing plan
investment options both online and through its call center
advisors – and has also taken steps to enhance onsite
guidance and education workshops to include face-to-face
advice for clients who want more high-touch advice
delivery.

Through the alliance with Financial Engines, CitiStreet
will be able to broaden its relationships with employer
clients, potentially acting as the primary advisor on all
investment portfolios for plan participants.
Additionally, CitiStreet could continue to provide these
services post-retirement or following the move to a new
employer.

CitiStreet claims that callers to the CitiStreet Advice
Account increase savings from an average of 2.7% to an
average of 6.8%, an increase of more than 150%, while
Financial Engines’ forecasts show a caller’s chance of
reaching retirement goals nearly doubles.

CitiStreet services include:

personal assistance with investment selections and
transactions from a professional advisor over the core
holdings in the retirement plan